Australian Retail Sales Fall in December Following Black Friday: Australia
Australian retail turnover experienced a sharp decline of 2.7 percent (seasonally adjusted) in December 2023, according to the Australian Bureau of Statistics (ABS). This follows a revised increase of 1.6 percent in November 2023 and a 0.2 percent decrease in October 2023. The ABS noted that revisions to the seasonally adjusted data were larger than usual this month, reflecting improvements in the data as the evolving seasonal pattern becomes clearer.
Ben Dorber, the ABS head of retail statistics, explained that the significant fall in retail turnover in December was primarily attributed to a decline in discretionary spending. He stated, Consumers brought forward some of their usual December spending to November to take advantage of Black Friday sales. This shift in spending from December to November reflects the growing popularity of Black Friday sales and the impact of cost-of-living pressures, with consumers seeking out bargains and taking advantage of discounts in November.
While there was a substantial seasonally adjusted fall in December, retail turnover still managed a modest 0.1 percent increase in trend terms. This suggests that underlying retail spending remains subdued when discounting the volatile movements observed in recent months leading up to the Christmas season.
The ABS data revealed that turnover declined across all non-food industries that had experienced a boost from Black Friday sales in November. The household goods retailing sector encountered the most significant decrease of 8.5 percent, following a notable surge last month. The next notable drops were observed in department stores (-8.1 percent), clothing footwear and personal accessory retailing (-5.7 percent), and other retailing (-1.1 percent).
Mr. Dorber noted that retailers reported slow trading conditions in early December following the success of Black Friday before picking up again in the lead up to Christmas and Boxing Day sales, where discounting activity resumed.
In terms of food-related industries, turnover decreased in cafes, restaurants, and takeaway food services (-1.1 percent), while food retailing experienced a slight 0.1 percent increase.
The retail turnover decline was evident across all states and territories, with the majority experiencing decreases of more than 2.0 percent.
Additional information on the December reference period, including quarterly price and volume data, will be released on February 6, 2024.
The ABS expressed gratitude to businesses for their continued support in responding to its surveys.
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